New Providers in U.S. ETF Space Set Record: ETFGI

Following are the providers with the largest amount of new assets:

• Pacer ETFs – $421.3 million in three new Trend Pilot ETFs
• Newfleet Asset Management – $129.7 million in a liquid-alternative unconstrained bond ETF
• Tuttle Tactical Management – $111.4 million in two ETFs
• Goldman Sachs Asset Management – $77.6 million in two ActiveBeta (smart beta) ETFs
• Lattice Strategies – $75.5 million in four smart beta ETFs

As for specific products the 19 new providers have been launched in 2015, the Pacer Trend pilot 750 ETF leads with $259.4 million in assets, followed by the Newfleet Multi-Sector Unconstrained Bond ETF with $129.7 million.

The Pacer Trend pilot 450 ETF has raised $106.8 million, and the Tuttle Tactical Management US Core ETF $66.3 million.

Active ETFs

According to the ETFGI report, regulatory filings with the SEC show that many asset managers are considering launching ETFs. It said a significant number of potential new providers had filed to launch “nontransparent” active funds, and were waiting to see whether the SEC would approve their new fund structures.

The proposed structures would provide transparency at the same frequency of traditional mutual funds, whereas under the current structure, the holdings of active ETFs are fully transparent.

In late 2014, the SEC approved one such structure: Eaton Vance’s NextShares, a so-called exchange-traded managed fund. About a dozen asset managers have announced they will sponsor NextShares funds.

But regulators have raised concerns that a lack of transparency could hurt retail invetors. Precidian Investments’ application for a similar product, called ActiveShares, was denied twice by the SEC.

— Related on ThinkAdvisor:

• Folio Signs Up to Sell NextShares
• SEC Seeks Comments on Listing, Trading of New, Complex ETFs
• Eaton Vance to Help BDs Cover Tech Costs of Its New Active ETFs